This is a trend following analysis using a breakout entry formation that generally has the greatest results. This analysis is good for 4H trading, but can also be used on almost all time frames and on all pairs. Basically, this analysis is based on breakout and certain forms of reversals. The analysis seeks to highlight potential breakout setups that can result in higher reward. To ensure consistent successful trades, the trader should exercise some degree of patience and wait for the perfect set up to execute trades. There’re are several types of breakouts, I only focus on two types of breakouts, trend line breakout and double top/triple top/ bottom breakout. Even with the two, I only trade double top/ triple bottom breakout most of the times and trend line breakout at some other times. Double top/Triple top/ bottom breakout is more dependable and reliable than the other. Note, trend line breakout includes also breaks that occur out of various shapes such as wedges, channels, triangles, and all the other shapes part from rectangles. Below are the simple sketches of some of the breakout setups I’ll be focusing on.
Technical observation Yesterday, the pair on the daily chart above rose but could not reach the resistance level it established around 1.1187-1.1175, however despite this upward movement, I still expect this pair to continue with an increasing bearish momentum towards the supportive level marked a
Technical observation GBP is still trading above the supportive zone it established around 1.2984-1.2948, yesterday’s candle went up and i still expect more of this bullish movement today towards the key level 1.3516. In case you bought this pair within the zone 1.2984-1.2948 after a rejection of
Technical observation USD is continues to trade on an increasing bullish momentum above the zone 109.75-109.62. I expect this pair to rise further towards the key level 111.76 followed by a possible breach above it. If you went long within the zone mentioned above following a bounce after a retrace